Cisco to reveal Aussie job cuts in August

SC Australia Staff | Jul 13, 2011 3:14 PM
Targets savings of US$1 billion.

Cisco has refused to comment on its Australian staffing plans, following reports that the company could make up to 10,000 staff redundant.

Bloomberg reported sources close to the company claiming up to 7,000 jobs could go as early as September, with another 3,000 staff leaving the company through early retirement offers.

But the vendor's Australian office would not confirm the cuts or say where they may land. It refused to reveal local headcount including the size of its security team, and said it would disclose details on 10 August.

"As we announced on our Q3 earnings call, Cisco will take out US$1 billion in costs from our FY12 expense run-rate as part of our efforts to streamline company operations, including a planned reduction in workforce," it said in a statement.

"We will provide additional detail on the cost reductions, including layoffs, on our next earnings call on August 10, 2011."

In May, analysts were expecting Cisco to cut up to 4,000 jobs -- its largest cuts since 2002, after the dot-com bubble burst. 

Sydney-based Ovum analyst Jens Butler today said the restructuring would "enable the organization to focus on innovation and maintain its market leading position into the future".

"With this greater emphasis on its core competencies and cleaner engagement model with the multiple layers of its partner ecosystem, it is clear that Cisco is listening to and shifting with market dynamics rather than attempting to force the market on its own," Butler said.